We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Home Loans Up 14% On This Time Last Year

Pimperne1
Pimperne1 Posts: 2,177 Forumite
in Debate House Prices & the Economy
Council of Mortgage Lenders on Sky News:

http://news.sky.com/home/business/article/16192562

I suspect that this is bad news for those who are not expecting a crash though.
«1

Comments

  • System
    System Posts: 178,375 Community Admin
    10,000 Posts Photogenic Name Dropper
    This might be a silly question, but is there actually any correlation between these lending figures that people like to bang on about and house prices?
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Pimperne1
    Pimperne1 Posts: 2,177 Forumite
    Joeskeppi wrote: »
    This might be a silly question, but is there actually any correlation between these lending figures that people like to bang on about and house prices?

    I always imagine that either:

    a) House prices have gone up therefore loans have gone up, or
    b) More houses are being sold and therefore buyers are returning to the market.

    but I could be quite wrong (as both of these would be "good news" for those not hoping for a crash and "bad news" for those hoping for a crash).
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Pimperne1 wrote: »
    I suspect that this is bad news for those who are not expecting a crash though.

    What has gross lending that includes remortgaging to do with whether house prices rise or fall.

    Are you trying to convince yourself that prices aren't going to fall? As the posts sound more and more desperate.
  • Pimperne1
    Pimperne1 Posts: 2,177 Forumite
    Thrugelmir wrote: »
    What has gross lending that includes remortgaging to do with whether house prices rise or fall.

    Are you trying to convince yourself that prices aren't going to fall? As the posts sound more and more desperate.

    Did the figure against which it is being compared include remortgaging?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Pimperne1 wrote: »
    Did the figure against which it is being compared include remortgaging?

    Yes. Gross lending does not reflect net new lending.

    Net lending has been falling. This is the driver to underpin a rise. With banks yet to contract several hundred billions of lending. Going to take some years for the full adjustment to filter through.
  • Pimperne1
    Pimperne1 Posts: 2,177 Forumite
    Thrugelmir wrote: »
    Yes. Gross lending does not reflect net new lending.

    Net lending has been falling. This is the driver to underpin a rise. With banks yet to contract several hundred billions of lending. Going to take some years for the full adjustment to filter through.

    But the number of property sales increased in February too (anyway I thought all homeowners were somehow locked into an unattractive SVR which they couldn't get out of so what makes you think there are a large number of re-mortgages in the figures).
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Probably a fair number of people are trying to beat the SD deadline.

    Net mortgage lending in January 2012 was only £700 million.
  • Pimperne1
    Pimperne1 Posts: 2,177 Forumite
    edited 21 March 2012 at 12:05AM
    Thrugelmir wrote: »
    Probably a fair number of people are trying to beat the SD deadline.

    Net mortgage lending in January 2012 was only £700 million.

    Its probably more than that now then. Wasn't it just an increase of £700 million?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Pimperne1 wrote: »
    Its probably more than that now then. Wasn't it just an increase of £700 million?

    Gross mortgage lending in January was £10.5 billion.
  • Pimperne1
    Pimperne1 Posts: 2,177 Forumite
    Thrugelmir wrote: »
    Gross mortgage lending in January was £10.5 billion.

    What was net mortgage lending in Jan 2012? Anyway the figure I am interested in is in value of approvals and I might have a look tomorrow for that. Not really sure what people paying off their mortgage or overpaying has to do with the price of anything.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture